Fee Only Financial Planner and Tax Advice From a CPA

Financial Transparency:

 

Making information as accessible as possible
Not actively hiding anything

How Much Is Your Financial Advisor Costing You?

With most so-called “financial advisors” it’s tough to know what you are paying them.

Between commissions, hidden fees, and asset under management charges, you may be paying a fortune and not realizing it.

Shore Financial Planning Is a Fee-Only Financial Planner

The only person you pay is me. No hidden fees or charges.

Get Your Personalized Estimate Now

How Does Your Financial Advisor Compare?

Key:

Always:

Sometimes:

Rarely:

CategoryShore Financial PlanningNon Fee-Only PlannersCPA, Tax AccountantInsurance AgentsBrokers
Portfolio & Net Worth Analysis
Investment Planning & Implementation
Tax Planning & Tax Projections
Tax Preparation with Audit Protection
Financial Independence Planning/Retirement Analysis
Debt Management, Reduction, & Leverage
Education Planning
Insurance Analysis (home, life, auto, etc.)
Estate Planning
Mortgage Review/Refinance Advice
Employee Benefits Review
Cash Flow Analysis & Record Keeping
Goal Setting
Unlimited Advice
Coaching: Financial/Life/Business

Shore Financial Planning – Fee-Only, NO Sales, NO Commissions or Kickbacks

Non Fee-only Planners – Commissions and/or Fees Based on Assets Managed

CPA/Tax Accountants: Fee Based on Hourly Rates PLUS Commissions if they Sell Products

Insurance Agent – Commissions

Brokers – Commissions and/or Fees Based on Assets

Research from Vanguard outlines the value of working the right advisor. The financial benefits are:

 

Think about what an extra 3.75% could do for your wealth over time. If you take $100,000 and earn 3.75% you get a future value of $208,815. That’s an extra $108,815 for every $100,000 invested! Having the right advisor matters.

Sadly, a lot people are not in a situation where they can actualize this additional savings because they are dealing with various levels and combinations of ignorance, incompetence or incentives.

So how can you increase the odds that you will achieve some of the benefits mentioned above?

Take these steps when hiring a financial advisor:

  1. Ensure you are working with a fiduciary. Work with someone who is a fiduciary and is legally required to put your best interest first. If they are a broker or dually registered as a broker and fiduciary, thank them for the free coffee and move on.
  2. Ask the right questions. Inquire about their level of financial knowledge, experience and incentives.
  3. Consider their approach. Watch for solution language before understanding the context. What is the approach taken to identify the needs of an individual?
  4. Incorporate a litmus test. All products and most solutions have pros and cons to them. If all you hear are the advantages of something that should at least kick in some healthy skepticism. Inquire about the pros and cons of doing something other than what is being recommended. If they can’t provide what the other side looks like it could be due to ignorance, incompetence or incentives.

 

You wouldn’t go to a doctor and expect him to provide a solution with the mention of a few symptoms, would you?

You would expect him to go through the paces to fully understand what is happening internally to then prescribe the right course of action.

Diagnosis without proper diagnostic can lead to deficiency, danger, or death when it comes to medical issues.

Don’t subject yourself to this same approach when it relates to your finances.

What Are High Financial Planning Fees Costing You?

  • If you are working with a financial advisor who charges you a percentage of your assets, it could literally cost you millions.
  • Percentage-based fees increase automatically as you add to your savings
  • Percentage-based fees increase automatically as the market goes up over time

Questions to Ask Your Current Financial Advisor:

  • How much are you paying them?
  • How are they paid? (commissions, Assets Under Management (AUM), fee-only, other fees?)
  • Are they a fiduciary?
  • Are they pro-actively planning to reduce your tax liability?

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